Media Release
26 May 2025
Australian Deputy Ambassador to Indonesia, Gita Kamath, joined Indonesian officials and business representatives, as well as representatives from Japan and the Asian Development Bank on 23 May at an event to mark the financial close of the Muara Laboh Geothermal Power Expansion in West Sumatra, which allows the project to move into the construction phase.
The project will nearly double power generation to supply electricity to around 900,000 households in West Sumatra.
Australia provided a US$15 million concessional loan as part of the Asian Development Bank’s total finance of US$92.6 million.
The loan was funded through the Australian Climate Finance Partnership, a blended finance facility managed by the Asian Development Bank and funded by the Australian Government.
Deputy Ambassador Kamath said the Muara Laboh expansion showed how blended finance mechanisms could help advance geothermal development and meet energy security and decarbonisation goals.
“Australia and Indonesia are working together to harness the economic opportunities of an inclusive energy transition through both the Australian Climate Finance Partnership and KINETIK, the Australia-Indonesia Climate and Infrastructure Partnership,” she said.
The Australian Climate Finance Partnership concessional loans help lower risk and financing costs, to attract private investors and help realise transformative projects such as the Muara Laboh expansion.
KINETIK is Australia’s flagship climate and energy initiative in Indonesia, deepening bilateral cooperation to reduce emissions and promote energy systems and industries to accelerate the net zero transition.
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